[Aju News DB]
South Korea's Doosan Group said Tuesday it has completed the sale of its defense subsidiary to the rival Hanwha Group for 297 million US dollars in a deal to reduce its debt through asset sales.
Hanwha Techwin, a Hanwha Group defense unit, has acquired a controlling 59 percent stake in Doosan Defense System & Technology (DST) for 353.8 billion won ($297 million), the Doosan group said in a regulatory filing.
For two years, Doosan has aggressively restructured its bloated group structure to reduce its group-wide debt which stood at 11 trillion won at the end of last year. The group hopes to lower its debt to eight trillion won by the end of this year.
Doosan Engineering and Construction has agreed to sell its heat recovery steam generator division to General Electric for 300 billion won. The conglomerate sold Doosan Infracore's machine tools business to MBK Partners, a Seoul-based private equity fund, for 1.13 trillion won. Doosan Infracore will float its construction vehicle affiliate Doosan Bobcat in the second half of this year.
Along with restructuring, the Doosan group specializing in consumer goods, manufacturing, trading and construction, became the first family-run conglomerate to complete a hereditary fourth-generation succession in March when Park Jeong-won was designated as new chairman.
Aju News Lim Chang-won = cwlim34@ajunews.com
reporter
Park Sae-jin
swatchsjp@ajunews.com
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